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<SEC-DOCUMENT>0001171843-07-000250.txt : 20070515
<SEC-HEADER>0001171843-07-000250.hdr.sgml : 20070515
<ACCEPTANCE-DATETIME>20070515124831
ACCESSION NUMBER:		0001171843-07-000250
CONFORMED SUBMISSION TYPE:	8-K
PUBLIC DOCUMENT COUNT:		2
CONFORMED PERIOD OF REPORT:	20070515
ITEM INFORMATION:		Results of Operations and Financial Condition
FILED AS OF DATE:		20070515
DATE AS OF CHANGE:		20070515

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			INTELLIGENT SYSTEMS CORP
		CENTRAL INDEX KEY:			0000320340
		STANDARD INDUSTRIAL CLASSIFICATION:	SERVICES-PREPACKAGED SOFTWARE [7372]
		IRS NUMBER:				581964787
		STATE OF INCORPORATION:			GA
		FISCAL YEAR END:			1231

	FILING VALUES:
		FORM TYPE:		8-K
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	001-09330
		FILM NUMBER:		07851015

	BUSINESS ADDRESS:	
		STREET 1:		4355 SHACKLEFORD RD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
		BUSINESS PHONE:		4043812900

	MAIL ADDRESS:	
		STREET 1:		4355 SHACKLEFORD ROAD
		CITY:			NORCROSS
		STATE:			GA
		ZIP:			30093
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>document.htm
<DESCRIPTION>FORM 8-K FILING DOCUMENT
<TEXT>
<!DOCTYPE html
	PUBLIC "-//W3C//DTD HTML 4.01 Transitional//EN"
	"http://www.w3.org/TR/html4/loose.dtd">
<html lang="en-US">
<head>
  <title>Form 8-K Filing</title>
</head>

<body>

<p align="center">
  <font size="5">
    <b>UNITED STATES<br>SECURITIES AND EXCHANGE COMMISSION<br></b>
  </font>
</p>

<p align="center">
  <font size="3">
    <b>Washington, D.C. 20549</b><br>
  </font>
</p>


<hr noshade="1" width="150" align="center">
<p align="center">
  <font size="5">
    <b>FORM 8-K</b><br>
  </font>
</p>


<hr noshade="1" width="150" align="center">
<p align="center">
  <font size="3">
    <b>CURRENT REPORT</b><br>
  </font>
</p>


<p align="center">
  <font size="3">
    <b>Pursuant to Section&nbsp;13 OR 15(d) of<br>The Securities Exchange Act of 1934</b><br>
  </font>
</p>


<p align="center">
  <font size="3">
    Date of Report (Date of earliest event reported) <b>May 15, 2007</b><br>
  </font>
</p>

<hr noshade="1" width="150" align="center">

<p align="center">
  <font size="5">
    <b>Intelligent Systems Corporation</b>
  </font>
   <br> <font size="2">
    (Exact name of registrant as specified in its charter)
  </font>
</p>




<!-- Registrant's State of Inc, File and IRS Number -->
<table cellpadding="0" border="0" width="100%" cellspacing="0">

   <tr valign="top">
    <td width="32%" align="center">
      <br> <font size="2">
        <b>Georgia</b>
      </font>
    </td>
     <td width="3%">
      &nbsp;
    </td>
     <td width="32%" align="center">
      <br> <font size="2">
        <b>001-09330</b>
      </font>
    </td>
     <td width="3%">
      &nbsp;
    </td>
     <td width="32%" align="center">
      <br> <font size="2">
        <b>581964787</b>
      </font>
    </td>
  </tr>

   <tr valign="top">
    <td width="32%" align="center">
      <font size="2">
        (State or other jurisdiction<br>of incorporation)
      </font>
    </td>
     <td width="3%">
      &nbsp;
    </td>
     <td width="32%" align="center">
      <font size="2">
        (Commission File Number)
      </font>
    </td>
     <td width="3%">
      &nbsp;
    </td>
     <td width="32%" align="center">
      <font size="2">
        (IRS Employer Identification No.)
      </font>
    </td>
  </tr>

</table>


<!-- Registrant's Postal Addess and Zip Code -->
<br><br><table cellpadding="0" border="0" width="100%" cellspacing="0">

   <tr valign="top">
    <td width="19%">
      &nbsp;
    </td>
     <td width="47%" align="center">
      <br> <font size="2">
        <b>4355 Shackleford Road, Norcross, Georgia</b>
      </font>
    </td>
     <td width="2%">
      &nbsp;
    </td>
     <td width="13%" align="center">
      <br> <font size="2">
        <b>30093</b>
      </font>
    </td>
     <td width="19%">
      &nbsp;
    </td>
  </tr>

   <tr valign="top">
    <td width="19%">
      &nbsp;
    </td>
     <td width="47%" align="center">
      <font size="2">
        (Address of principal executive offices)
      </font>
    </td>
     <td width="2%">
      &nbsp;
    </td>
     <td width="13%" align="center">
      <font size="2">
        (Zip Code)
      </font>
    </td>
     <td width="19%">
      &nbsp;
    </td>
  </tr>

</table>
<p align="center">
  <font size="2">
    Registrant's telephone number, including area code: &nbsp;
    <b>(770) 381-2900</b>
  </font>
</p>

<p align="center">
  <font size="2">
  	<br /><br />
    ________________________________________________________________________________<br />
	(Former name or former address, if changed since last report)
  </font>
</p>

<!-- Simultaneous filing obligation checkboxes -->
<br><br><table cellpadding="0" border="0" width="100%" cellspacing="0">
	<tr valign="top">
	<td colspan=3>
	<font size="2">Check the appropriate box below if the Form 8-K
	filing is intended to simultaneously satisfy the filing obligation
	of the registrant under any of the following provisions:</font>
	</td>
	</tr>
	<tr valign="top">
		<td width="5%">&nbsp;</td>
		<td><font size="2">
			[  &nbsp; ]
		</font></td>
		<td><font size="2">
			Written communications pursuant to Rule 425
			under the Securities Act (17 CFR 230.425)
		</font></td>
	</tr>
	<tr valign="top">
		<td width="5%">&nbsp;</td>
		<td><font size="2">
			[  &nbsp; ]
		</font></td>
		<td><font size="2">
			Soliciting material pursuant to Rule 14a-12(b) under
			the Exchange Act (17 CFR 240.14a-12)
		</font></td>
	</tr>
	<tr valign="top">
		<td width="5%">&nbsp;</td>
		<td><font size="2">
			[  &nbsp; ]
		</font></td>
		<td><font size="2">
			Pre-commencement communications pursuant to Rule 14d-2(b)
			under the Exchange Act (17 CFR 240.14d-2(b))
		</font></td>
	</tr>
	<tr valign="top">
		<td width="5%">&nbsp;</td>
		<td><font size="2">
			[  &nbsp; ]
		</font></td>
		<td><font size="2">
			Pre-commencement communications pursuant to Rule 13e-4(c)
			under the Exchange Act (17 CFR 240.13e-4(c))
		</font></td>
	</tr>
</table>

<hr noshade="1">
<p>
  <font size="3">
    <b>Item 2.02 Results of Operations and Financial Condition</b>
  </font>
</p>

<p>
  <font size="2">
    On May 15, 2007 the Registrant issued a press release, a copy of which is attached hereto as Exhibit 99.1 and is incorporated herein by reference.
  </font>
</p>

<p>
  <font size="3">
    <b>Item 9.01. Financial Statements and Exhibits.</b>
  </font>
</p>

<p>
  <font size="2">
    &nbsp; &nbsp; Exhibit 99.1.  &nbsp; &nbsp; &nbsp; Press release dated May 15, 2007
  </font>
</p>

<hr noshade="1">

<!-- Registrant's Signature -->
<p align="center">
  <font size="3">
	<b>SIGNATURE</b>
  </font>
</p>

<p>
  <font size="2">
    &nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities
	Exchange Act of 1934, as amended, the Registrant has duly caused this report to be
	signed on its behalf by the undersigned hereunto duly authorized.
  </font>
</p>

<table cellpadding="0" border="0" width="100%" cellspacing="0">
   <tr valign="top">
    <td width="47%">
      &nbsp;
    </td>
     <td width="5%">
      &nbsp;
    </td>
     <td width="47%" align="center">
      <font size="2">
        <b>Intelligent Systems Corporation</b>
      </font>
       <hr noshade="1"> <font size="2">
        (Registrant)<br><br>
      </font>
    </td>
  </tr>

   <tr valign="top">
    <td width="47%" align="center">
      <font size="2">
        <b>May 15, 2007</b>
      </font>
       <hr noshade="1"> <font size="2">
        (Date)
      </font>
    </td>
     <td width="5%">
      &nbsp;
    </td>
     <td width="47%" align="center">
      <font size="2">
        <b>/s/ &nbsp; BONNIE L. HERRON</b>
      </font>
       <hr noshade="1"> <font size="2">
        Bonnie L. Herron
      </font>
       <br> <font size="2">
        <i>Vice President and CFO</i>
      </font>
    </td>
  </tr>

</table>

<!-- Exhibit Listing -->
<hr noshade="1">
<br>
<table cellpadding="6" border="0" width="100%" cellspacing="0">
  <tr valign="top">
    <td width="20">&nbsp;</td>
    <td colspan="2"><b><font size="3">Exhibit Index</font></b></td>
  </tr>
  <tr valign="top">
    <td width="20">&nbsp;</td>
    <td width="30" align="center"><font size="2">99.1</font></td>
    <td width="300"><font size="2">Press release dated May 15, 2007</font></td>
  </tr>
</table>
<br> <br> <br> <br> <br> <br>


</body>

</html>
</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>newsrelease.htm
<DESCRIPTION>PRESS RELEASE
<TEXT>
<html>
  <head>
    <title>Intelligent Systems Announces First Quarter 2007 Results</title>
  </head>
  <body><p align="right">EXHIBIT 99.1</p><h3 align="center">Intelligent Systems Announces First Quarter 2007 Results</h3>
<p>NORCROSS, Ga., May 15, 2007 (PRIME NEWSWIRE) -- Intelligent Systems Corporation (AMEX:INS), (www.intelsys.com) announced today the financial results for its first quarter ended March 31, 2007. Net loss for the first quarter of 2007 was $133,000 ($0.03 per basic and diluted share) compared to a net loss of $445,000 ($0.10 per basic and diluted share) for the corresponding period in 2006.
</p>
<p>
Revenue from product sales in the first quarter of 2007 was $3.1 million, a 67 percent increase over the first quarter of 2006, while revenue from services declined by 68 percent to $963,000 in the quarter ended March 31, 2007 compared to the first quarter of 2006. Overall, the company reported total revenue of $4.0 million in the quarter ended March 31, 2007 compared to total revenue of $4.9 million in the quarter ended March 31, 2006.
</p>
<p>
The period-to-period increase in product revenue reflects growth in international sales of the ChemFree subsidiary products as well as new license revenue recognized by the CoreCard Software subsidiary. The period-to-period decline in services revenue is mainly due to an unusually large multi-year software services contract that was recognized in the first quarter of 2006. Consolidated operating expenses declined by 15 percent in the first quarter of 2007, lowering the loss from operations to $274,000 compared to a loss from operations of $702,000 in the first quarter of 2006.
</p>
<p>
As previously disclosed, as a result of the sale of the company's QS Technologies business in July of 2006, the company classified the QS business as Discontinued Operations and the financial results for 2006 have been reclassified to conform to this presentation. In the quarter ended March 31, 2007, the company reported an additional gain of $97,000 on the sale of the QS business following completion of an earn-out period in which there were no proposed adjustments by the buyer.
</p>
<p>
About Intelligent Systems Corporation
</p>
<p>
For over thirty years, Intelligent Systems Corporation (AMEX:INS) has identified, created, operated and grown early stage technology companies. The company has operations and investments in the information technology and industrial products industries. The company's consolidated subsidiaries include VISaer, Inc. (www.visaer.com), CoreCard Software, Inc. (www.corecard.com), (both software companies) and ChemFree Corporation (www.chemfree.com) (an industrial products company). Further information is available on the company's website at www.intelsys.com, or by calling the company at 770/381-2900.
</p>
<p>
In addition to historical information, this news release may contain forward-looking statements relating to Intelligent Systems and its subsidiary and affiliated companies. These statements include all statements that are not statements of historical fact regarding the intent, belief or expectations of Intelligent Systems and its management with respect to, among other things, results of operations, product plans, and financial condition. The words "may," "will," "anticipate," "believe," "intend," "expect," "estimate," "plan," "strategy" and similar expressions are intended to identify forward-looking statements. Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. The Company does not undertake to update or revise any forward-looking statements whether as a result of new developments or otherwise. Among 
the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are delays in product development, undetected software errors, competitive pressures, changes in customers' requirements or financial condition, market acceptance of products and services, changes in financial markets, changes in the performance, financial condition or valuation of affiliate companies, the risks associated with investments in privately-held early stage companies, the impact of events such as rising gas prices that could impact the aviation industry, the price of certain plastics components and the company's other worldwide market opportunities, other geopolitical or military actions, and general economic conditions, particularly those that cause businesses to delay or cancel purchase decisions.
</p>
<pre>

               CONSOLIDATED STATEMENTS OF OPERATIONS
         (in thousands, except share and per share amounts)

                                        Three Months Ended March 31,
 ------------------------------------------------------------------
                                             2007          2006
 ------------------------------------------------------------------
 Revenue
  Products                               $     3,086    $     1,852
  Services                                       963          3,024
 ------------------------------------------------------------------
   Total revenue                               4,049          4,876
 Total cost of revenue                         1,642          2,434
 Expenses
   Marketing                                     437            521
   General &amp; administrative                      980          1,102
   Research &amp; development                      1,264          1,521
 ------------------------------------------------------------------
 Loss from operations                           (274)          (702)
 ------------------------------------------------------------------
   Interest income (expense), net                 63            (28)
   Investment income (loss), net                 (11)             5
   Equity in income of
    affiliate companies                            1             72
   Other income (loss), net                       (9)            34
 ------------------------------------------------------------------
 Loss from continuing operations                (230)          (619)
 ==================================================================
 Income from discontinued
  operations                                      --            174
 Gain on sale of discontinued
  operations                                      97             --
 ==================================================================
 Net loss                                $      (133)   $      (445)
 ==================================================================
 Loss per share - continuing
  operations: basic and diluted          $     (0.05)   $     (0.14)
 ==================================================================
 Income per share - discontinued
  operations: basic and diluted                 0.02           0.04
 ==================================================================
 Net loss per share:
  basic and diluted                      $     (0.03)   $     (0.10)
 ==================================================================
 Basic weighted average
  shares outstanding                       4,478,971      4,478,971
 Diluted weighted average
  shares outstanding                       4,582,666      4,478,971
 ==================================================================



                CONSOLIDATED BALANCE SHEETS
                      (in thousands)

                                          March 31,     December 31,
                                             2007           2006
 ------------------------------------------------------------------
 ASSETS                                  (Unaudited)
 ------------------------------------------------------------------
 Current assets:
   Cash                                  $     3,576    $     2,136
   Accounts receivable, net                    2,238          2,006
   Notes and interest receivable,
    current portion                              538          3,445
   Inventories                                   934            904
   Other current assets                          963          1,072
 ------------------------------------------------------------------
     Total current assets                      8,249          9,563
 ------------------------------------------------------------------
 Long-term investments                         1,175          1,174
 Notes receivable, net of
  current portion                                722            841
 Property and equipment, net                   1,161          1,009
 Goodwill, net                                 2,047          2,047
 Other intangibles, net                          347            359
 Other assets, net                                17             17
 ------------------------------------------------------------------
 Total assets                            $    13,718    $    15,010
 ==================================================================

 LIABILITIES AND STOCKHOLDERS' EQUITY
 ------------------------------------------------------------------
 Current liabilities:
   Accounts payable                      $     1,156    $     1,558
   Deferred revenue                            2,259          3,094
   Accrued payroll                               953            974
   Accrued expenses and other
    current liabilities                        1,233          1,088
 ------------------------------------------------------------------
     Total current liabilities                 5,601          6,714
 ------------------------------------------------------------------
 Other long-term liabilities                     293            356
 Minority interest                             1,516          1,516
 ------------------------------------------------------------------
 Total stockholders' equity                    6,308          6,424
 ------------------------------------------------------------------
 Total liabilities and
  stockholders' equity                   $    13,718    $    15,010
 ==================================================================
</pre>
<pre>
CONTACT:  Intelligent Systems Corporation
          Bonnie Herron
          770/564-5504
          bherron@intelsys.com
</pre>
</body>
</html>
</TEXT>
</DOCUMENT>
</SEC-DOCUMENT>
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